UK Finance’s latest later life mortgage lending update for Q3 2025 suggests that borrowing among older customers is continuing to expand, with increases across mainstream products and specialist lending such as lifetime mortgages.
According to the trade body, there were 39,950 new loans advanced to older borrowers in the quarter, an 18.4% rise on the same period last year. The total value of this lending reached £6.5 billion, up 24.7% year on year.
Specialist activity also grew, albeit more modestly. There were 6,040 new lifetime mortgages issued in Q3, an annual increase of 3.4%, with lending volumes totalling £530 million, up 3.9% on Q3 2024.
Retirement interest-only products remain a small part of the market but are showing signs of steady expansion. In Q3, lenders advanced 335 of these loans, an 11.7% increase, with a value of £30 million, up 11.1% on the year.
The data indicates that later life borrowing now accounts for a notable share of the UK mortgage market. Residential later life loans represented 7.84% of all residential advances in the quarter, while buy-to-let later life loans made up 21.74% of all buy-to-let lending.
OLDER BORROWERS IN FOCUS
Mary-Lou Press, president of NAEA Propertymark, said the figures underline a shift in industry focus. She said: “It is positive to see many lenders demonstrating a firm commitment to those who may be aged 55 and over.
“In previous years, such demographics have typically been underserved with suitable mortgage products that are tailored to their needs.”
She added that the increase in borrowing among this age group also reflects wider challenges. “However, there is a flip side to highlight, and that is openly talking about why there is increased demand within this specific age bracket.
“We are seeing ever growing complexities in life, such as cost-of-living concerns and the ability to put aside such sizeable sums of money needed for deposits.”
Press said the pressures younger people face mean many are unable to secure a first home until far later than previous generations. “The reality is that the pressures many people face in their younger years are contributing more heavily towards not easily achieving a footing on the housing ladder until much later in life.”
The trend is likely to sustain lenders’ efforts to broaden criteria and develop products suitable for older customers, particularly as affordability challenges show few signs of easing.
